today to let us have her birthday shift together. >> we went to all lengths. i don't think they got enough candl candles. happy birthday again. >> how many do you need? >> for neither one of us. >> that was the diplomatic way to do it. >> thank you, all, for the birthday greetings on twitter as well we appreciate that also wilford frost, our cameraman. >> that is "closing bell." thank you, all see you tomorrow. "mast ffast money" starts nw overlooking new york city's time square traders on the desk, tim seymour, brian kelly, steve grasso, guy adami. united technology reportedly looking to buy rockwell collins. what price subtraders see the deal getting done for. plus one left for dead dotcom bubble stock quietly made a new all-time high today. we'll give you the name today and tell you tow to play it. later bitcoin surging to a new high leaving some worry the

cry crypto currency bubble might be ready to burst brian kelly tells us why it has more room to run and take your bitcoin tweets. first, we start with the markets. dow and s&p closing at a record high marks the dow's tenth straight gains. the xlk, etf, tracks the tech sector officially recovering all its losses from the june 9th selloff, closing at its highest level since 2000 now over that time, health care, financials and industrials have taken off. with tech seemingly back to the saddle, is it time to put fresh money to work? so basically the question is, do you go with the sector rotation or do you stick with tech which seems to be getting its mojo back >> i think you stay with tech for now. you mentioned the xlk, so beginning i think june 8 thth, xlk topped up around 58 or so. saw a precipitous drop not only on june 9th but the weeks that to followed what the tech is setting up for is a push back to the all-time

highs we saw in '99, somewhere around 65. you've seen selloffs of this magnitude before on technology what we talked about on that day, i remember, it wasn't a devastating day because the rest of the market traded okay and financials had a tremendous day. we talked about the rotation on that day i think tech is now just in the next leg to the move higher to the 65 level. >> i think a big takeaway from that day is goldman was negative on that whole space, how susceptible this whole entire space is to one analyst coming out saying that the sector could be overvalued. that, to me, is the real risk in tech right now >> depends on -- >> the reality >> it depends on where you look, but he made comparisons to 2000 saying the earnings capability is less than it was in 2000. the truth is, if we're going to see rotation, you want to be out of tech. we haven't seen it yet. >> yeah, i mean, look, google is the one that's interesting because it's down 7% the one that hasn't broken out, the one that has the best valuation argument you know, there's no question facebook and apple just dezroe

str str ed their numbers amazon is priced to perfection i've been wrong about that for a long time. what was interesting last week, with apple's numbers, qqqs, the xlk, didn't really get going now they have it going because on friday, you got a payroll number that told you the u.s. economy actually got a little bit more mojo, itself. therefore, tech's not where i'd go here. i'd go financials. financials have outper dpoformed with the ten year stuck at 225, that's good news. >> i think you stick with tech i don't think you from to make a choice, binary choice, financials or tech i don't think there's anything wrong with being techs exactly what guy said, when these sold off, it's fairly clear, we did a good job of saying, you know what, this is an atm trade people are using tech as cash to get perhaps into the financials. so now that we're back, i think this -- >> you rotate out of financials? >> i don't think you'd have to rotate out you could have both, right if you're strapped for cash -- >> this was the atm trade,

people pulled money out of technology to buy financials, why are we back to the june 9th levels and we've got financials doing quite well since june 9th. >> welt, lol, look, let's face t the markets have been -- it's been so quiet and placid from a volatility perspective, outside a couple days like june 9th. the markets for the rest of the summer have done almost nothing. actually, from what we hear from people on the show, there's some cash on the sidelines. look at the bank of -- the ma merrill lynch numbers. a lot of cash on the sideline. doesn't surprise me they can both rally. >> the move in xlf from november, the true move. you go back a year, it actually outperformed tech. it's not a lagger when you look at it through that proisicele. do rates move higher and give the added kick to the xlf? that remainses to be seen. >> let's say rates are moving higher because what tim said, the economy is doing better than we thought, the jobs are getting better then tech should do well in that

mar -- >> it's cyclical. >> again, i don't think it has to be binary i think you can have a little bit of both. i mean, it's a portfolio, after all. >> the context with which tech rallied is interest rates are very low, peach are reaching for growth, go to the parts of the market that would show that sort solve growth technology was sort of the answer to that does that mean we're back to that environment because tech was really the standout leader in that environment. are we in an environment where economic growth is being valued and so, therefore, the inflows we saw in industrials, for instance, last week, that is going to be followed >> i think the environment we find ourselves in, people are saying what -- what work, what doesn't work people have established financials for whatever reason, can argue the reasons why. the fchbl financials are clearly working again. technology, valuation stores, great balance sheet stores, great growth stories what you don't have, though, is

energy, which can't get out of its own way. people have shelved that now for seemingly the rest of the summer and sort of retail as well has been put on the back burner so i think people say tech works, financials work, energy doesn't work. >> the whole market works. >> retail -- >> i mean, this is my concern. my concern is if we're going into a period where seasonably september is a brutal month mon, a terrible month of the year, you have no volatility, you're going to have more central banks, not less. period in that environment, do i want to buy high multiple stocks? if anything, i want to buy the financials, i want to buy the industrials, i want to buy the names -- if the fed's moving faster, it's because the stock -- those have more tailwind than tech if anything, if you feel like the world is a great place go, o to the places that are cheaper. >> let's talk about within technology, because within technology, we've seen pretty interesting moves since june 9th. we put up this graphic before, but alphabet, obviously, was one that has really had problems off the back of its earnings amazon has been a lagger,

microsoft a lagger in the context of tech. where do you go, if you want to stay in tech, that's what you said at the top of the mazon, i based on the other two, three selloffs it had recently, you come up with the price we got as low as 982 i think it's almost ready, if you believe tech is going to move higher, you're almost ready to rebuy amazon off the recent weakness. >> right. >> for me, if i'm in tech, i want to stay away from google. that's because of what's going on in europe has me concerned. until there is some clarity about how heir going to be able to rub their business in europe, you have stay away from alphabet or google. the other names are fine i'll give you an outlier i mentioned last week. i think you guy snap here. >> snap. >> yes >> you tweeted out something today talking about mostly employees worrying about the lockup. >> pre-ipo price is above the market price now so people aren't necessarily going to sell at a loss.

generally employees don't do that you have people wanting to buy, rumors -- >> the company rumored to buy it, though, said they're spending money to build it in-house that might be you have a tailwind, now you have a headwind. >> potentially, but at the same time, why are they building it they see value in it why did facebook want to buy it? they see value and have the network effect already i think there's something there. >> look, i think employees hanging in with the company they worked for because they've been granted stock. that's not a reason to feel comfortable. of course, they're going to stay there. i think snap, to me, if anything, it's a no touch. i don't think you're betting the farm on it, brian. >> no. >> the fact of the matter is, the competition in this space when there's, i think, ad dollars that are going decidedly to facebook, this is not one i'd go for google, to me, is the one that makes the most sense we've seen this out of europe before not china. their not going to take them apart piece by piece if google has a problem, so doesn't facebook there's antitrust issues all around the world

if you want to go after these guys, i think google is find. >> microsoft, post-earnings, spiked up. pulled back off the conference call i think mike soft makes a lot of sense as well. snap, an 11th hour 90 cent stock briefly, four trading days ago, traded north of 14 see the percentage moves to the outside. speaking of technology, chip zoks having their best day since june 19th up 2%. our next guest says the rally may be running out of steam. chart master carter worth over at the plasma to break it all down. >> i have charts really the opposite of what you've been talking about, the key day, where we are now it really hasn't been a rally. today was big in semis let's go through some of the facts and figures before we get do it. so, obviously, everyone knows the stocks index to put it in context, you got $1.1 trillion in market value. got 30 stocks. importantly, it's this number. only three that might have ticked to a count after four at the close.

degree, four stocks have made it back after the damage done on that day when there was the short record on that vid ya anva it was amazon, facebook, apple, so forth so we have this key day, right, it's this outside day where otherwise known, technical parlance, is you have a lower high, a lower low, and you close very poorly. we have yet to recover that ground now, if you were to look at this chart, i'm going to get rid of this here and move on to the next one, this is the issue. it's another 4.5% just to get back to break even from that sort of fateful day exactly two months ago but i think this is the important part it's all about relative performance. yes, we know that semis have gone up. but their relative performance, if you were just to take from that low, their relative performance to the tech sector actually made a new multi-month

low on friday and that's the dedpekt. ev even if you're buying off the bounce, you're not generating returns in excess of the risk you're taking by missing out on the sector so i want to look at a favorite and least favorite going to start with a least favorite, qualcomm draw the lines any way you want. 18 times free cash dplflow, 38 times. one way to draw the lines would be this. we have a well-defined break in trend with a gap meaning that's typically an earnings miss okay another way to draw the lines would be this. a fairly well-defined head and shoulders and a weak right shoulder that's usually if we put our line back in, we've got that whole range there. you've got this break in trend and not a good setup all right. moving on. intel. i think you draw the lines like this a lot of tension there and my guess is that we're going to break out and then finally, take

a look at a long-term chart of intel going back to the '07 peak, that is a well-defined wedge. you can call it whatever you want, but it is tension and the presumption is that intel is going to exceed these highs. defensive name within an aggressive area of the market that is still well below its june 9th level >> i think carter comes over come on over, carter i mean, he's the chart master, so, we'll bring the chair in thank you very much. >> always good. >> carter, i rarely do this because you did highlight two individual stocks, qualcomm which you see breaking down, intel you see breaking out. >> sure. >> there's another trick stock we always get lots and lots of tweets about that is nvidia >> its the one that caused the so-called problem. >> right dmis initial. >> we had the short report for whatever reason, the fragility was high that day. cracked nvidia and cracked everything else, apple to netflix, priceline, so far yet nvidia, the number one

performing stock in the s&p, one year, two year, three year, five year, has overcome that and it is the darling does this mean they have the better mouse trap or as some people, say, yes, they're the chips going into cars or whatever it is, i have to rely on you for all of that it is interesting that the very stock that caused the crime, so to speak, has after killing everybody else has gone on, recovered, left, i mean, key, just as you said, google still below that low amazon is still below that day the damage is not -- >> it's high for nvidia. >> it's incredible. >> in today's session. does this mean the chart is -- >> repaired. >> -- stronger >> it is very bullish to, think about it, to take a hit and to overcome it means that you're so strong that you endured that kind of setback, whereas most the stocks have not recovered the damage >> so, carter, you showed the chart of the semiconductors, some of the tech where you're saying it hasn't recovered back to the new high. >> an absolute basis and relative basis, really quite still -- >> folks at home if they're trading this, what do they look

for to see if there's a reversal coming look for a high volume day >> you're talking about if semis can get to the new high -- >> right, if they're going to fail, what's the caution sign? >> one thing to look for, today we had big news on a particular name, semi, still while the index moved, it would have to climb another 5% to get back t o where it was think about apple after its news, tied to all this, had a great report and basically zuk at that high, too, meaning you'll needs a lot more momentum and money coming back to this area of the market really to get it to the point where it's all clear. we don't have the all-clear sign. >> last quick question your view on technology. that's how we started the show in terms of recouping from june 9th, that day. >> that's right. technology is barely above that level and interestingly, of course, as we know, the all-time high was a monday like this. it was the 27th of march, 2000 and we -- >> he's really taking a -- >> essentially we're stuck at that high. so we'll see we'll see if it's able to do an important move above that higher

or continues to get stuck and -- >> still to be determined. >> right. >> i think you want to be underweight this area of the narcotic. >> carter worth, thank you, cornerstone. what do we do today, grasso? >> first of all, i'm still long cars -- we didn't do -- >> avis. >> long all my home builders i did not sell them. a lot of price action recently has made me think this housing recovery, i don't know if i should hole on to them as deep as i'm in. >> carter, we could -- i'm not going to bring him back. >> for your own good. >> he may very well be right i look at intel, topped out at $38 at the end of 2014, topped out that same price beginning of this year, i, me, g-swizzle, than to hope it's going to break out of current levels. all right. coming up, forget mega cap tech stocks we've been talking about. a number of tech darlings from the dotcom era. plus cbs moving slightly

higher after its earnings report we'll hear from the ceo on what drove the quarter and what that could mean for disney shareholders. bitcoin rallying above 3,300 for the first time ever. what's behind the move is there still time to buy our resident bitcoin expert, b.k., brian kelly, will break it all down and take your tetwes. get your questions in @cnbcfastmoney right now much for "fast money" still ahead. phone-everything on it- -oh, they even paid it off! wow! yeah. it's nice that every bad decision doesn't have to be permenant! ditch verizon. keep your phone. we'll even pay it off when you switch to america's best unlimited network.

welcome back to "fast money. questi we got an earnings alert on cbs. after the company said it saw strength in one of its retro shows. julia boorstin with more. >> les moonves said show time got a boost from "twin peaks" and bullish on the rush of "star trek" to drive subscriber, cbs all-access, direct to consumer service. it was talk after streaming services that had dominated moonves' comments including the announcement of a new direct to consumer sports service in the works. >> later this year, we'll roll out a 24/7 live streaming channel like cbsn for sports as part of our ongoing ott strategy it does not yet have a name. we think sports fans are looking

for something like this and that opportunity is significant >> reporter: moonves also announced that cbs all access will expand internationally starting with canada in 2018 saying they're very aware of the success that other streaming services have had internationally referencing netflix. he also announced their pa ed pd of expectations for cbs all access and show time ott, on track to have more than 4 million subscribers by year end. >> distribution, we're leveraging the strength of our content to be a leading player in the new skinny bundles and the traditional ones, too. and with our growing over the top channels, we're set up to succeed no matter how people choose to consume their content. >> moonves also boasted that upfront ad increases are strong, now getting paid for viewing that happens over a longer period of time, up to a month after a show initially airs. but for all that ad strength, moonves also said now the

company drives less than 40% of its revenue from advertising as it diversifies away from reliance on that value tiolatild marng market. >> cbs has been the surprising winner since it split from vie con in 2005. back then it seems like viacom would prevail with its cable and movie assets since that split, viacom is down 26% and cbs is up 165% cbs also has doubled the market cap of its battered sister, so cbs doing a better job of adjusting to the new media landscape? grasso >> well, after that status, hard to argue that it hasn't done, you know, as good a job. if you look at it on a chart, though, because we don't know how binary the situation is going to be going forward because it's really hard to pick who's going to win the streaming wars, he's going to win the content batbattles disney has been my content play. that's been a rough patch. if you look at cbs, use the 200 days your stop

>> so viacom, we made fun of viacom last week. >> yes, we did. >> why basically their kfortunes hinge on the success or failure -- >> of the revival of mtv. >> we made sport of that rightly so les talking about "star trek" -- >> and "twin peaks." >> he's the greatest thing in the history of television. the viacom quarter in my opinion was not much dichbt thfferent ts today. the problems viacom faced, cbs faces. cbs should have a premium valuation to viacom but should be almost twice. i think the answer's no. doesn't mean cbs should go down. i think viacom deserves a higher premium. >> i'm long viacom so i tend to agree with the valuation argument i will say, however, cbs has a much better pole position in terms of where they are on the dial, in terms of their ability to bring content what they can do in a sports skinny bundle, or something from a digital package over the top,

their ntaa contracts, these are worth a lot of money these are things that viacom just doesn't have. viacom is trying to resuscitate four, five core brands which i think are undervalued, but to say that cbs is -- is on a par, i mean, i think cbs certainly has a better position with their core brands now. having said all that, yeah, i think they're all vulnerable when you talk about it's now less than 40%, come on, it's 40% of their business. >> broadening this out beyond cbs and viacom, it you had to pick a place in media where you would be, disney obviously comes to mind because disney is reporting tomorrow where would you be, what sourt o player what you want to be >> you want to be in the disrupters, you want to be in threat politic netflix. i'll go back to snap facebook. >> nontraditional -- >> not to take away from cbs cbs has been fabulously managed. les moonves has done a tremendous job as those stats say. that being said, i can see the value argument in viacom, too,

because it was mismanaged for a long period of time. now you got this turnaround story. if you want the juice, you got to go to where the disruptions happen. >> it's because they have the distribution as well i mean, could that also be a cable company like a comcast >> let's take netflix, for example, right i've been a skeptic of netflix but for $9.95, $12.95, you're dmefr going to get rid of that it's disrupting the entire space. for the time being, that's where i want to be. >> ultimately i'm going to go back to netflix as a fabulous transition medium, conduit, whatever you want to call it, a pipe i'd rather own disney, has four, five levers they can pull. they've been able to get back to it i agree with your disrupter comment. i'd rather have google what you just said is why you have to be giving a look to at&t, verizon and comcast. these guys control the distribution as well and they're controlling it on either side. even if their core medium has changed. >> all right speaking of disney, we should

note disney's ceo bob iger will be on "the closing bell" tomorrow 4:00 p.m. eastern time. still ahead a megadeal could be brewing in the defense space between united technologies and rockwell collins what would that mean for the rest of the group? we'll have a special report. i'm melissa lee. you're watching "fast money" on cnbc first in business worldwide. in the meantime, here's what else is coming up on "fast." ♪ i'm forever blowing bubbles >> the surge in bitcoin has some calling it a bubble, but b.k. says not so fast there's something the bitcoin bears are missing and he'll brain it down. and speaking of bubbles, guess who's back >> hey, remember me? the pets.com spokespuppet? yeah, i know, you haven't seen me in, like, a decade since the dotcom bubble burst. >> no, not him, but one 1999 dotcom bubble stock just made new highs and it's got some investors nervous. the name and out of profit when "fast money" returns

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welcome back to "fast money" live at the nasdaq market site this marks the tenth straight day of gains for the dow. talks of a merger in the defense space sending rockwell collins surging today so at what price could the deal get done? bitcoin orallying above $3,300 buy wrap kelly says it's not in a bubble he'll explain why and take your tweets later on. first forget today's super hot tech names because a number of dotcom bubble era stocks are coming back. could it even be time to, as prince would spay party like its 1999 dom chu is here.

>> life is just a party, parties aren't meant to last some stocks, that party has kept going and going. a couple have been raging so far this year. yee dle thee have zostood out for shareholders first, check out signs of verisign gained around 31% so far in 2017 now worth around $10 billion to put it in perspective. that means it's less than half of what it was in early 2000 still, big move. there's shares of stamps.com no secret what these guys do internet postage and shipping company went public in 1999, worth over $3.5 billion today. up over 90% just so far this year going to round it out with a home run this is petmed express better known by its business name, 1-800-petmeds. i own a couple dogs. i know who these people are. a do t another stock, making it close

to $1 billion. of course, we're not mentioning stocks like amazon or priceline that are not survivors of the dotcom era but thriving over the course of a last few years melissa, after moves like we've seen in old internet names, some traders may be exercising perhaps a bit more caution in the days and weeks ahead >> stamps.com is certainly a name we vhaven't talked about i a little while you would have thought with the shift to e-mail, who mails things anymore yet there is apparently tremendous demand for stamps.com >> you know, first of all, that's all i do. >> you're probably the wrong person to go to out of this conversation you probably mail -- you probably write letters still and mail things. >> still using the carrier pigeon, is that correct? >> ha, ha. >> to your penpal. >> just asking. >> everybody done now? >> go ahead. >> dom started this with verisign, right? they just reported i think at the end of july. the interesting thing about verisign, it's not just godaddy

dmir anymore, they have an internet security thing, one of the reasons the stock deserves the 22.5 times forward multiple it gets look at the quarter, the thing that stuck out, they held on to their operating margins, in line with last year although this stock might seem expensive, it's nowhere near where it traded in '99 and i think there's upside here. >> the whole thing with stamps, they're working out deals, benefiting from e-commerce they're working out deals to ship things to clients from retail, e-commerce retailers cheaper than ordinarily would be able to do the problem is they worked out such beneficial deals, others are jealous. when you start looking at these deals, someone is going to make the united states post office pull back on these deals and these margins aren't going to look like what they look like right now. so i would not be a buyer of stamps petmeds, people spend whatever they want on their pets. i would still be a buyer here. >> look this guy here. b.k., you can are relate. >> that's right.

if you look at where b.k.'s money goes, right to 1-800-petmeds. >> not to shirts and ties. >> i would go with this, talking '90s, take a page from peter lynch's book, buy what you know. >> i don't think the tie is that bad. >> it's 100% rion. >> stamps.com are making a bunch of acquisitions. just bought shipping easy. a company that has free cash flow, paying down debt the valuation, i think, is crazy, though. at 35 times, this is for a company that ultimately is a brick and mortar business. i don't think their margins are really there congratulations on turning this thing around >> all right let's shift to another hot name. bitcoin, shares of everybody's favorite digital currency soaring to record levels this past week. don't try calling this a bubble at least according to b.k. here. so, b.k., what are you looking at >> well, i'm looking at what's gone on over the last couple weeks in bitcoin we've had a lot of volatility and part of it was due to a

software upgrade that was going on with the system and so there was a bit of a contention going on, been a two-year battle but we finally got that software upgrade. so the first thing that's happening is we're getting some uncertainty reduced. there was a concern that maybe there'd be something going wrong with the software upgrade. it looks like it's going to go through. probably wednesday afternoon we'll have it locked in. so that's number one that's what's going on second thing that's going on is institutions are starting to come into the market they are starting to realize this is a noncorrelated new asset class with very high returns. i can tell you from my perch, there are so many institutions looking to get into this space that there's an absolute wall of money ready to come toward this market and then secondly -- third thing that's going on, we had a fork, in other words, the bitcoin network split and a portion of the bitcoin network went to what's called bitcoin cash so everybody who owned bitcoin got a bunch of bitcoin cash which is kind of like a special dividend.

that's one way to think about it and there was some concern that this group of people that started bitcoin cash were going to do something that would hurt builtcoin in general now that they've split, you've taken that uncertainty out so all of those three things combined have caused a bull market in bitcoin, you're seeing people buy this back so let's take a look at the charts and what's happened you see really back here in the beginning of july, that's when we first had a lot of the bitcoin miners signal, hey, we're in it for this software upgrade. and that's when we've just seen this rally now here we are, a couple days away from the software upgrade going and, boom, we're ready to take off i think there's a lot more room to go. the one stat i use with everybody, there's a lot of promise to bitcoin but let's say it becomes digital gold and that's all it is if bitcoin can capture 5% of the market cap of gold, bitcoin is up $25,000, that's your price target that's almost a 10-1 so i'll

take that every day and twice on sunday. >> what is it as a percentage of the market cap of gold right now, b.k.? >> oh, it is about half a percent. >> a half a percent. >> yeah. >> okay. just doubled that -- >> even if you just doubled that, right? bitcoin is incredibly volatile, up over 140 odd some percent for this year. so far so, you know, it doesn't take that much. it wasn't even a year ago that it was at $250 so you're talking about massive, massive returns here and that looks, to me, going forward, we're going to have the same type of thing. >> all right i think b.k. should come back over. >> i think he has to. >> why not >> i'm going to be yelling at you. >> of course you have to come back over. >> if you had to put together a bear case, guy, you listened to b.k., made a cogent case for bitcoin. >> fair case is maybe perhaps the government does something. cryptocurrency unfriendly. no idea what that might be if there's a bear case, it's the government getting their tentacles into this thing. >> are you in bit coin. >> no.

>> why not. >> waiting to see the market settle -- >> i agree with buy wrap, there really is an interest from a diverse group of investors, not just retail folks, not people who are ready to roll the bones. i think there is certainly a case to be made for this becoming an asset class. i do think it's underregulated that's the biggest issue this has happened in many different asset classes. in fact, the commodities space was the wild, wild west for a long time and, in fact, a lot of people made money hand over fist until it got regulated i'm not saying that's going to mean bitcoin and its peers start to change ways i just want to talk about gold quickly, too, because i think if you think about why people have owned gold, is that a reason why they're fwigoing to own bitcoin i don't think so i think this really is about the logistics and ease of transaction. >> is it because bitcoin is not physical or because bitcoin is too volatile or another reason >> bitcoin as a means of transfer of payment, that is anonymous and very, very efficient is something gold will

never be anymore and gold has taken two years with the dollar that for the last year has spit the bit, you've had unbelievable political environment and gold is down. not so good. >> so i don't own bitcoin and b.k., we would all agree, knows more about bitcoin than any of us on this desk and a lot of people that i've met i can't describe it to someone i can't sell it. if i can't explain to someone, i can't buy it, so maybe you can explain it to me after the show once again for the 100th time. >> you know what, it would be amazing if there was a book about it you know what i mean if some guy -- >> b.k. >> -- wrote a book about it so you could explain it to your friends. >> let's get to a tweet. we did ask you on twitter to tweet us questions for b.k. about bitcoin. let's go to the first one. what is the best way to buy bitcoin? >> so, i still think the easiest way to buy it is via coin base they have a very good user interface. it's very easy to use. very intuitive looks just like your bank account. actually if you have coin-based account, you could also see that

in your fidelity accounts these days. >> phoennext tweet, what base ao in from? you were first have you sold it and bought it often? >> i am an active trader i have bought bitcoin at all different prices first purchase was about $6, rode it all the way up and all the way down lowest purchase price was about $250 i'm in it from all over. i will actively trade it >> so let me ask you a question. if i had you tell me in two sentences or less why i shouldn't be wor are rrieworrien bitcoin in two sentences or less can you do that? >> absolutely. a giant ledger like an accountant has don't need value in the middle transfer third person to person, without having an intermediary changes the financial intermediation industry.

>> was that -- >> sure. still ahead, two travel stocks, two big moves lower. marriott, avis out with earnings after the bell bringing you headlines you need to know. plus rockwell collins surging to a new all-time high so at what price could this deal get gone there were some clues in the onmaetrk we'll explain when "fast money" returns 37 [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80%

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welcome back to "fast money. fa take a look at shares of rockwell collins, surging on rumors that united technology is interested in making a deal. deal or no deal? phil lebeau join us from chicago with more. >> reporter: remember, this started because of reports over the weekend that united technologies might be interested in buying rockwell collins earlier today, dow jones reported that there was at least an offer made below $140 a share. we do know from our david faber that both companies have hired bankers to advise them but officially neither rockwell collins or united technologies is commenting regarding the discussions or what discussions might be taking place. on paper, this is why this deal makes sense and, yes, the defense side of the portfolios gets a fair amount of attention. you have to look at the general

aviation or commercial aviation side limited product overlap. and they would be very strong, the combination of avionics, what rockwell collins brings to the table, as well as aircraft interiors, and you have to understand that united technologies also has sizable aircraft interior business, but together these companies under united technology's banner would be stronger when it comes to negotiations with the airplane manufacturers. they're talking about the boeing, the airbuses of the world. on the flip side, here's a reason why it's going to have some hurdles, if it does get -- a deal does get reached. regulatory approval. you can bet that boeing, airbus, their competitors like honeywell will say, huh-uh, these guys are a little too powerful especially join lo when you look at the aviation industry and means there would be a rich price for rockwell collins. how rich that remains to be seen. rbc capital was out with a note earlier today saying it gives a chance of a deal 50/50 whether or not it goes through, but it would have to be closer to $145 a share and, again, dow jones reported earlier today

that an offer was made from united technologies to rockwell collins, below $140 a share. so, guys, we're in that phase here where some figures have been bantied about but at this point, neither company is confirming that there are talks. neither of them are commenting on what discussions might be taking place >> all right phil, thank you. phil lebeau in chicago so this has been the group everyone was buying into the election, the notion being there would be much more defense spending is there still money left in this trade at this point, guy? >> i think so, the short answer is yes i'm not certain that collins is the way to go. we've been steadfast on this stock now for years. one of the great american companies nobody talks about a few weeks ago there was an article that came out, boeing might be doing avionics internally which is not great for collins, by the way. so although i think a deal gets done, i think it you're long collins, you take profits but boeing, monster, lockheed martin ever since that little donald trump fiasco seven or eight months ago, that stock has been on fire as well. so the short answer to your

question is, defense stocks have upside here. >> yeah, and i actually think collins has upside you think about it, right, they announced that the price was offered below $140 so a deal is probably going to have to be above $140 the regulatory approval, yes, that concerns me but that comes after the deal is announced. and then you have the negotiating -- the negotiating part of it that's a good thing for them so i think for a trade, not saying load the boat, but for a trade here with rockwell collins, i think you can buy it. >> and sell boeing i think if it's going to be to their detriment, boeing up 54%, a beast in the entire space. >> these trades -- >> what? >> you say for a trade, wasn't that the trade the trade was on rockwell from 110 to 130. >> we're talking to -- >> collins -- it's going to have another $40 -- >> i think you missed the upside. >> not saying you did, you may have owned it. >> i'm saying if you have -- what will you do tomorrow morning? you buy it. >> how could you miss the trade in rockwell collins?

how can you miss the trade if they're talking about they're not accepting a $140 deal? it's going to be above $140 hypothetical hypothetically. >> except the market doesn't believe it it's trading at $127. >> plenty of deals all the other stocks never -- that's not the way they work when it's out there, it's still the -- >> i doebn't think these guys ae in play. i get there's a bid for them out there somewhere. boeing, fantastic. guys, this is not amazon these are not multiples, these are not unlimited multiples you can throw at the stocks. i agree with guy boeing is competing with main suppliers and this is something i'd be a little concerned about. rockwell crushed their third quarter. those were great, great numbers, but i don't see the street running to push these guys higher. >> yeah, my pushback would be, i'm inclined to take -- great company, collins i'm inclined to take profits at $127. >> all right for some clues on where traders think this deal could price out, let's turn to the options market mike joins us from austin to break it all down. hey, mike. >> reporter: unsurprisingly on the news we saw above average option activity in collins

today, 6 1/2 times the average daily call volume, in fact, the most active contract for the august 130 calls over 1,500 of those traded for $1.60 on average. those are people that are obviously betting that the deal is going to take place above $130, $160 if it takes place what's happened is options premiums have gone up on this. usually when a deal gets announced, the premium eventually gets sucked out if you're long the stock, i'd look to sell those against the long positions. >> i love when mike's with me. he's on the show on fridays. >> that's right. >> when he's not at the chinese restaurant in cape cod. >> when he's not out at -- >> or in las vegas where he spent a week or two. >> he's in austin today. >> he's a very busy man. mike, thanks for making the time for us that show, guy, by the way, is called "options action." >> yes, it is. >> on fridays at 5:30 p.m. eastern time. >> great shore. still ahead, marriott sinkings follsin sinking. adoradhi neso wcham t tre fe.

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seema mody is breaking it down. >> reporter: shares of marriott moving lower by 2% after hours following fwi ining guidance th short of expectations. the company's push into international really a key focus during the conference call when it were tan pertains to ee euro/dollar country has had a role >> improving economic growth and greater u.s. demand driven by the stronger dollar. as a result, europe's rev par rose 7% on strong performance in the second quarter >> reporter: sorenson focused on the new tie-up with allibaba saying china outbound travel is growing. visa processes, to facilitate travel many chinese are traveling on their own versus in groups marriott continues to increase the number of hotels in shanghai and across the mainland. in terms of stock performance, the stock is down after hours, but this has been a bannermarri

outperforming peers, hilton and hyatt among others. >> thanks so much, seema moda marriott is down in the after hours but the hotel chain still up 28% so far this year in a year when it and other travel stocks have been basking in paradise cruise lines some of the biggest winners. booking sites like priceline, resort stocks like wyndham, all soaring. avis tanking 8% after its earnings report. why have the car rental companies not been able to adjust from competition from lyft and uber while hotel and lei sw leisure stocks thrived what we're seeing with the used car market, car market in general, the values of cars? >> at some point these guys should be opportunists, could be getting cars a lot that cheaper. i've been renting cars out there the last couple months it's not cheap out there the demand for the product is still there in some cases. with marriott, this is a case,

again, get back to a multiple, what's fair? their international growth is phenomenal and, in fact, i would be excited about this china deal i think there's more behind it. >> should we be worried about the euro strengthening in recent weeks? >> the opposite -- >> which is the opposite -- >> crushing it. >> right i was a little confused about that if you look back to 2014, certainly the dollar is higher, but i don't know, i mean, yes, i would be concerned about that. i would think the european union gets concerned about that. you know, when it comes back to these car companies, you know, they are trying to change their business they clearly missed the disruption that was going on they're trying to change their business if you're going to be in them, you have to believe they're going to be able to manage this. maybe autonomous cars are the answer. >> avis was up 50% going into this that's a tough thing it was used car prices do me -- >> you're still holding on >> i'm still holding on. up next, final trade stay tuned ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats.

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final trade time, tim. >> the michael temer scandal in may was like buying bitcoin. take some profits here i am. >> b.k. >> stick with nvidia. >> wow. >> marriott on weakness. take a look tomorrow midday. >> guy. >> i love the 1999 with dom.

>> wasn't that good? >> great segment >> were you 62 then? >> excellent. >> verisign. >> i'm melissa lee join us tomorr f moworore "fast money. "mad money" with jim cramer starts right now to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. so that's it this is the end of